Sociology for Business Management

1. Authority is power that is legitimate: power becomes authority when it is accepted by those subject to it as rightful (Weber), so authority is a form of power.
2. Power can be exercised by force or influence even without consent, whereas authority rests on consent, law, tradition or the position held, and it is generally exercised within defined limits.

Interactionism (symbolic interactionism) is a micro-level sociological perspective that explains society through the face-to-face interaction of individuals and the meanings they give to symbols, words and gestures.

Two assumptions:

1. People act toward things on the basis of the meanings those things have for them.
2. These meanings arise from social interaction and are modified through interpretation as people deal with one another.

Ascribed status is a social position assigned at birth or by factors beyond one's control, such as sex, caste, ethnicity, or being the son of a king.

Achieved status is a position earned through personal effort, ability or choice, such as being a doctor, an engineer, a bank manager or a graduate.

The first is fixed and inherited; the second is open and gained by merit.

Post modernity is the condition of society after modernity, marked by doubt about grand theories and progress, the rise of media, information and consumer culture, and plural, fragmented identities and lifestyles.

Four features of gender:

1. It is socially constructed, not biologically determined.
2. It is learned through socialisation in family, school and media.
3. It varies from culture to culture and changes over time.
4. It involves unequal power relations, which determine roles, expectations and opportunities for men and women.

Four factors that encourage group formation:

1. Common interests or goals, such as business or professional objectives.
2. Need for security, support and belonging.
3. Proximity, that is, working or living near one another and interacting often.
4. Similarity of background, such as age, language, religion or occupation, and shared values.

Features of social change:

1. It is universal, since every society changes in some way.
2. It is continuous and occurs over time, at different speeds.
3. It is a change in social structure, relationships, institutions and values, not just individual behaviour.
4. It is caused by many interdependent factors: technological, economic, cultural and demographic.
5. Its consequences may be planned or unplanned, desirable or undesirable, and its pace and form differ between societies.

Two importances of research ethics:

1. It protects the rights, dignity, privacy and safety of participants through informed consent and confidentiality.
2. It ensures honesty, accuracy and credibility of research by preventing fabrication, plagiarism and bias, thereby building public trust in the findings.

Cultural hybridity is the mixing of elements from different cultures to produce new, blended cultural forms, identities and practices as a result of contact, migration and globalisation. Example: fusion music or food that blends local and foreign traditions.

The glass ceiling is an invisible barrier of attitudes and organisational practices that prevents women and minorities, despite their ability and qualifications, from rising to the top positions in an organisation.

Sociology is the scientific study of society and social behaviour, and business management deals with the organisation and direction of people to achieve goals. The two are closely related in the following ways.

1. Understanding people in organisations: Sociology explains group behaviour, roles, status, norms and leadership, which help managers motivate and lead employees and build teams.
2. Organisational structure and culture: Concepts such as bureaucracy (Weber), formal and informal groups, and culture help in designing structure and a healthy work culture.
3. Understanding the market and consumers: Knowledge of social class, family, reference groups, lifestyle and culture helps in market segmentation, advertising and product design.
4. Managing diversity and conflict: Sociology explains differences of gender, caste, ethnicity and religion and the causes of conflict, helping managers to promote inclusion and settle disputes.
5. Social responsibility and ethics: It shows the effect of business on society and the expectations of the community, which supports corporate social responsibility.
6. Managing change: Knowledge of social change, technology and globalisation helps firms to adapt to new conditions.
7. Human resource practices: Studies of work, labour markets, inequality and gender guide recruitment, pay and workplace policy.

Hence sociology provides the social understanding on which sound management decisions rest.

Consumer behaviour. Consumer behaviour is the study of how individuals and groups select, buy, use and dispose of goods and services. Understanding it is important because:

1. It helps firms identify needs and wants and design products that satisfy them.
2. It supports segmentation, targeting and positioning, since buying is influenced by culture, social class, family, reference groups, income and lifestyle.
3. It guides pricing, promotion, distribution and brand decisions, and so improves sales and loyalty.
4. It helps predict trends and respond to changes in tastes, avoiding failure of new products.

Organisational culture. It is the shared values, beliefs, norms and practices that shape how people behave in an organisation. Understanding it is important because:

1. It guides employee behaviour, builds identity and commitment, and improves cooperation.
2. A strong culture supports strategy and performance, while a mismatch causes resistance to change.
3. It affects recruitment, motivation, ethics and customer service, and attracts and retains talent.
4. It is essential in mergers and in managing a diverse workforce.

Together, the first gives a manager insight into the external market, and the second into the internal environment, and both are needed for effective management.

The structural-functional approach sees society as a system of interrelated parts (institutions) each performing functions that maintain stability and order. The family is one such basic institution, and the approach explains it by its functions for society.

Main functions of the family (Murdock, Parsons):

1. Reproduction: It replaces members of society through the legitimate birth of children.
2. Socialisation: It teaches children language, values, norms and roles, preparing them for society.
3. Economic function: It is a unit of production and consumption, and it provides for the material needs of members.
4. Regulation of sexual behaviour: It controls sexual relations through marriage and kinship norms.
5. Emotional support and care: It gives affection, security and care for the young, sick and old.
6. Social placement: It gives a child's initial status, such as class, caste and ethnicity.

Parsons argued that in modern industrial society the family has lost several functions to other institutions (schools, firms, the state) but retains two essential ones: the primary socialisation of children and the stabilisation of adult personalities. The nuclear family fits industrial society because it is mobile and has a clear division of labour (instrumental male and expressive female roles).

Critique. The approach is criticised for neglecting conflict, inequality and domestic violence, for assuming the nuclear family is the ideal form, and for justifying traditional gender roles.

Social inequality is the unequal distribution of resources, opportunities, rewards and power among individuals or groups in a society. It is a general condition and can arise from many sources such as income, gender, age, caste or ethnicity. Example: women being paid less than men for similar work, or rural children having poorer access to schools.

Social stratification is the structured, hierarchical ranking of people into layers (strata) such as classes, castes, estates or slavery, which persists across generations and is supported by social institutions. Example: the caste system in Nepal or the division into upper, middle and lower classes.

In short, stratification is the organised form through which inequality is built into society.

Corporate governance is the system by which companies are directed and controlled, defining the relationships among the board, management, shareholders and other stakeholders. Its scope covers:

1. Board of directors: Composition, independence, roles, duties and accountability of the board and its committees.
2. Shareholders' rights: Protection of shareholders' voting and information rights, including minority shareholders.
3. Disclosure and transparency: Accurate, timely financial and non-financial reporting.
4. Internal control, audit and risk management: An effective audit committee, independent auditors and internal controls.
5. Ethics and conduct: Codes of conduct, conflict-of-interest policies, and prevention of fraud and corruption.
6. Stakeholder relations and CSR: Fair treatment of employees, customers, creditors, community and the environment.
7. Executive remuneration and succession: Fair pay linked to performance and planned management succession.
8. Compliance with laws and regulations: Observance of company law, securities law and regulators' directives.

Urban sociology is the branch of sociology that studies social life, structures and processes in towns and cities: urbanisation, migration, housing, poverty, crime, class, the family, work and the way in which people interact in urban settings.

Difference from the sociology of the city. The two terms are often used together but differ in emphasis.

Thus, urban sociology studies the social life in the city, and the sociology of the city studies the city as a social phenomenon.

Entrepreneurship is the process of identifying an opportunity, organising resources, and bearing the risk of creating and running a new venture to earn profit and create value.

Sociology of entrepreneurship. It studies entrepreneurship as a social phenomenon, that is, how social context shapes who becomes an entrepreneur, how ventures are founded and how they succeed. Its main concerns are:

1. Social background: Family, class, caste, ethnicity, education and religion influence the choice to become an entrepreneur. Example: business communities such as the Newars and Marwaris in Nepal.
2. Social networks and capital: Contacts, trust, kinship ties and community support supply capital, information, labour and customers.
3. Culture and values: Weber's Protestant ethic linked values of thrift and hard work to capitalism; cultural attitudes to risk, failure and wealth affect enterprise.
4. Institutions: The state, laws, financial systems and education encourage or restrict entrepreneurship.
5. Gender and inclusion: Barriers and opportunities for women and marginalised groups in starting businesses.
6. Impact on society: Entrepreneurship creates employment, innovation and social change, and also inequality.

This view shows that entrepreneurship is not only an individual act but is embedded in society.

Definition. Sociology is the scientific study of human society, social relationships, groups, institutions and social behaviour. The term was coined by Auguste Comte in 1838 from the Latin socius (companion) and the Greek logos (study).

Historical development as an academic discipline

1. Intellectual roots. Ideas about society are found in ancient Greek thinkers (Plato, Aristotle), in Ibn Khaldun's study of social cohesion (14th century), and in the Enlightenment's emphasis on reason and the study of human affairs.

2. Social conditions behind its birth. Sociology arose in 19th-century Europe, in response to the French Revolution (1789), the Industrial Revolution, urbanisation, the growth of capitalism and the decline of traditional authority. These changes created new social problems (poverty, crime, class conflict) that needed systematic explanation.

3. Founders.

• Auguste Comte (1798-1857) named sociology, proposed positivism (using scientific methods to study society), and divided it into social statics and social dynamics.
• Herbert Spencer applied evolution to society ("survival of the fittest") and likened society to an organism.
• Karl Marx explained history by class conflict and the economic base; his conflict approach remains influential.
• Emile Durkheim (1858-1917) made it an academic discipline by defining social facts, using empirical methods (Suicide, 1897), and stressing social solidarity and function.
• Max Weber (1864-1920) stressed interpretive understanding (Verstehen) of social action, studied bureaucracy, authority and the Protestant ethic.

4. Institutionalisation. The first university sociology course was taught in the USA at Kansas (1890), and the first department at Chicago (1892); Durkheim gained a post at Bordeaux (1887) and founded the journal L'Annee Sociologique (1896). The Chicago School developed urban and field studies, and the American Journal of Sociology began in 1895.

5. 20th century developments. Talcott Parsons developed structural functionalism; Merton refined it; conflict theory revived after the 1950s; symbolic interactionism (Mead, Blumer) developed micro-level analysis; and feminist, phenomenological, ethnomethodological, critical (Frankfurt School) and postmodern perspectives expanded the subject.

6. Contemporary sociology. Today it has many specialisations (sociology of gender, labour, development, globalisation, media and environment) and uses both quantitative and qualitative methods. In South Asia, sociology developed after the 1900s, and in Nepal it was introduced at Tribhuvan University in the 1970s.

Thus sociology grew from social philosophy into an independent empirical discipline with several competing theoretical traditions.

In his article "Is Confucianism Good for Business Ethics in China?", P. K. Ip argues that Confucian values can contribute to ethical business and economic development in China, but only partly, and that they must be supported by modern institutions. His analysis can be summarised as follows.

1. Confucian values supporting business.

• Virtue and moral character (ren, yi): Business people are expected to be benevolent and righteous, placing integrity above profit. "The gentleman understands righteousness; the small man understands profit."
• Trust and honesty (xin): Trust is essential for business relations and reduces transaction costs.
• Relationships (guanxi) and loyalty: Networks based on mutual obligation and reciprocity help to build cooperation, credit and partnership.
• Harmony and social responsibility: Concern for the community and employees encourages fair treatment and long-term thinking.
• Diligence, thrift and education: These values promote hard work, saving and investment, which parallel the Protestant ethic in Weber's thesis and explain part of East Asian growth.
• Paternalistic leadership and family loyalty: They produce commitment in family firms.

2. Limitations and problems.

• Guanxi can lead to nepotism, favouritism and bribery, which damage fair competition and public trust.
• Confucian ethics is based on personal virtue and hierarchy, with little concern for impersonal rules, rights, transparency and the rule of law needed in a modern market economy.
• Traditional contempt for merchants and the stress on obedience may restrict innovation and criticism.
• In the market reform era, commercialisation has weakened traditional moral values, leading to scandals (fake goods, food safety, corruption).

3. Conclusion. Ip concludes that Confucianism is a valuable moral resource for business ethics in China, since it promotes virtue, trust and responsibility, but it is not sufficient by itself. Business development needs Confucian virtue ethics combined with legal regulation, transparency and institutional checks. This is consistent with the sociological view that culture and values shape economic behaviour but operate together with institutions.

Sociology of labour market. It is the sociological study of how labour markets are structured and how people find, hold and lose work. Unlike economics, which treats the market as determined by supply and demand, sociology sees it as shaped by social institutions, power, networks, culture and inequality. It examines how labour is recruited, rewarded and divided, and how this affects life chances.

Key areas of interest

1. Structure and segmentation of the labour market. The dual or segmented labour market theory separates the primary sector (secure, well-paid jobs with career prospects) from the secondary sector (insecure, low-paid jobs). Formal and informal sectors are also studied, which is important in countries such as Nepal where the informal sector is large.

2. Social inequality in employment. The roles of class, gender, caste, ethnicity, age and disability in access to jobs, pay and promotion. Topics include the gender pay gap, occupational segregation and the glass ceiling.

3. Social networks and recruitment. Granovetter's "strength of weak ties" shows that many jobs are found through personal contacts, kinship and community networks, rather than open competition.

4. Education, skills and credentials. Human capital, credentialism and how qualifications are used for selection, as well as the mismatch between education and jobs.

5. Employment relations and the nature of work. Trade unions, collective bargaining, labour conflict, working conditions, job security, alienation and control at the workplace.

6. Changing forms of work. Casual, contract, part-time, platform (gig) work, outsourcing and flexible labour, which increase precarity.

7. Unemployment and underemployment. Its causes, its social effects (poverty, migration, mental stress, crime), and policy responses.

8. Migration and globalisation. Foreign labour migration (a major feature of Nepal, with remittances), global production chains, and the effects of technology and automation on jobs.

9. Role of the state and institutions. Labour laws, minimum wages, social security and employment policy that regulate the market.

These areas show that the labour market is a social institution, not simply an economic mechanism.

Social research is the systematic, objective and orderly investigation of social phenomena (human behaviour, groups, institutions and relationships) using scientific procedures to describe, explain and predict them, and to build or test theory. It moves from a problem to evidence to conclusions through planned steps: problem formulation, review of literature, hypothesis or research question, design, data collection, analysis and reporting.

Three ways of doing sociological research

1. Quantitative research. It deals with numerical data and measurable variables and tests hypotheses with statistical tools. Typical methods are structured surveys, questionnaires, structured interviews, experiments and the use of official statistics. Samples are large and representative, so results can be generalised. Example: a survey of 500 employees to measure the relation between income and job satisfaction. Strengths are objectivity and replicability. Its weakness is that it can miss the meaning people give to their actions.

2. Qualitative research. It studies meanings, experiences and social processes in depth, using words rather than numbers. Typical methods are participant and non-participant observation, unstructured or in-depth interviews, focus groups, case studies, ethnography and content analysis of documents. Samples are small and the researcher interprets from the participants' point of view. Example: living in a squatter settlement to understand how residents cope with insecurity. Strengths are depth and validity. Weaknesses are subjectivity and limited generalisability.

3. Mixed-methods (combined/triangulation) research. The researcher combines the quantitative and qualitative approaches in one study, for example a survey followed by interviews to explain the survey findings. Using several methods cross-checks the results (triangulation) and offsets the weakness of each single approach, but it needs more time, skill and money.

(a) Family background, status situation and life chances

Life chances (Weber) are the opportunities a person has to gain education, income, health and social position. Tara was born into a wealthy, landed upper-class family, so she had economic capital (a 1,200-acre estate), educational advantage (a high-status boarding school) and social capital (contacts in elite and royal circles). Her class and status position gave her ready access to modelling, media attention, a newspaper column and a place in 'jet-set' society, opportunities that most young people from ordinary backgrounds would not get. Her status situation (prestige and lifestyle shared with the elite) also gave her the 'surrogate sister' link with the princes. Privilege also brought risks, such as the exposure that fed her addictions, but on balance her origins greatly widened her life chances.

(b) Cultural values and qualities presented as desirable

The media portrays the 'It' girl as young, slim, beautiful and fashionable; wealthy, with a luxurious, leisure-filled lifestyle; well connected to elites, royalty and celebrities; glamorous and publicly visible; and fun-loving, even rebellious. Fame, appearance, consumption and association with the rich are valued above talent, achievement or hard work. Being 'famous for being famous' is treated as a success in itself, which reflects the celebrity culture of consumerism, individualism and visibility. The 'come-back' storyline also rewards a public redemption.

(c) Power of 'It' girls compared with other wealthy upper-class people

Their power is limited. They have symbolic and media power, because they set fashion, attract publicity and can influence consumer taste and the products they endorse. But it is dependent and short-lived, since it rests on media interest and public fashion rather than on ownership. Other upper-class people hold real structural power: control of land, capital, businesses, political office and institutions, which passes down generations. The 'It' girl's fame is lent by the media and can be withdrawn, and she is often treated as entertainment. So she has visibility and influence over culture but little economic or political power, whereas the traditional elite hold lasting power.

(d) Society and business relations in the case

The case shows that business and society are closely interlinked.

• Media businesses (magazines, newspapers, TV) manufacture celebrities such as the 'It' girl because attention sells copy and raises advertising and viewing figures.
• Society's values (celebrity worship, consumption and class status) create the demand that these businesses serve, and in turn the businesses reinforce those values.
• Celebrity itself becomes a commodity: modelling, columns, endorsements and reality TV shows turn social status and image into profit.
• Class and social networks give access to business opportunities, which shows how social stratification shapes business outcomes.
• Businesses also have social responsibilities, such as how they portray women, addiction and unrealistic lifestyles, and the effect of such portrayals on young audiences. Thus business shapes society's tastes and values, while society's structure, values and demand shape what business produces.